Thu, Jul. 16, 8:04 AM
- eBay (NASDAQ:EBAY) reports payments revenue rose 16% to $2.26B in Q2. PayPal new active accounts increased 11% to 169M with 1.1B transactions processed.
- Marketplaces revenue fell 3% to $2.116B as F/X played a factor. Marketplaces active buyers were up 6% during the quarter.
- Total operating expenses +10.7% to $2.29B.
- A new $1B share buyback program is announced.
- Guidance: Full-year revenue growh of 3% to 5% (ex-F/X) expected. EPS of $1.72-$1.77 seen.
- Previously: eBay beats by $0.03, misses on revenue (July 16)
- Previously: WSJ: eBay nears enterprise unit sale (July 16)
- EBAY +1.43% premarket.
Thu, Jul. 16, 7:42 AM
Thu, Jul. 16, 2:04 AM
- eBay (NASDAQ:EBAY) is nearing a deal to sell its enterprise business to a consortium led by private equity firm Permira for about $900M, WSJ reports.
- The deal, which was being finalized late Wednesday, could be announced as soon as today, when the company releases its second-quarter results.
- Investors are also carefully watching eBay's PayPal (Pending:PYPL) unit, which is scheduled to complete its spin off tomorrow.
Wed, Jul. 15, 5:30 PM
Tue, Jul. 14, 5:29 PM
- PayPal (Pending:PYPL) will take parent EBAY's spot in the S&P 100 after the Marketplaces/PayPal split takes effect at the end of the week.
- PayPal will also take offshore driller Noble's (NYSE:NE) spot in the S&P 500. eBay proper will maintain its S&P 500 listing. Noble will move to the S&P MidCap 400, where it will take HMS Holdings' (NASDAQ:HMSY) spot. HMS will replace Swift Energy (NYSE:SFY) in the S&P SmallCap 600.
- EBAY +0.6% AH to $63.95. PayPal trades carried out on a "when issued" basis have unsurprisingly given the company a higher valuation than Marketplaces. Deutsche recently valued PayPal at $42/share.
Thu, Jul. 9, 4:07 PM
- Reuters reports EBAY is in talks to sell its Enterprise unit to P-E firm Thomas H. Lee for close to $1B.
- The news service cautions price disagreements remain and there's no guarantee a deal will be inked. Thomas H. Lee is said to have outbid other potential suitors in an auction process.
- Bloomberg reported last month eBay is looking to sell Enterprise, which provides e-commerce and in-store software/services for retailers, before its PayPal split, which is now set for July 17. The business, previously known as GSI Commerce, was bought for $2.4B in 2011.
- eBay closed up 1.3% to $61.78. Q2 results are due in a week.
- Update: Reuters' report coincides with news Toy 'R' Us, a major eBay Enterprise client, plans to take its U.S. e-commerce ops in-house by mid-2016.
Mon, Jul. 6, 6:30 PM
- Though PayPal (Pending:PYPL) shares won't be distributed to EBAY shareholders until after the July 17 close, shares have begun trading on a "when issued" basis (definition).
- The trades value the online/mobile payments giant at $44B, or a level equal to 59% of eBay's current $75B market cap.
- Though eBay's Payments ops only accounted for 44% of the company's 2014 revenue of $17.9B, PayPal has been widely expected to carry a higher post-split valuation than Marketplaces, given its much stronger growth profile.
- Earlier: PayPal on the hunt for more M&A opportunities
Mon, Jul. 6, 5:13 AM
- As it prepares for its July 17 split from eBay (NASDAQ:EBAY), PayPal (Pending:PYPL) is on the hunt for international acquisitions to drive growth and fend off predators, chief executive Dan Schulman told FT.
- "The balance sheet affords us the opportunity to look opportunistically where it makes sense to acquire," said Schulman. "I think there is a tremendous opportunity to look across the world."
- Last week PayPal announced it would spend nearly $1B to purchase Xoom, a digital money transfer provider, and more acquisitions now seem to be on the horizon.
- EBAY -0.3% premarket
Fri, Jul. 3, 9:20 AM
- Adding to their list of woes, Greeks can no longer use their PayPal (PYPL, EBAY) accounts, Quartz reports.
- Capital controls have effectively crippled the online payment service, which relies on traditional banks and credit cards to transfer money.
- Another area seeing a revival is Bitcoin (COIN, OTCQB:BTCS). New customers depositing at least €50 with BTCGreece, the only Greece-based Bitcoin exchange, rose by 400% between May and June. The average deposit quadrupled to around €700.
Thu, Jul. 2, 5:45 PM
- EBAY closed up 2.4% following news PayPal (Pending:PYPL) is buying top online international money transfer service XOOM for $890M. With PayPal now just 18 days away from trading separately, eBay is within $1.50 of a 52-week high of $63.30. Western Union had a less favorable reaction to the deal.
- Street reactions to the purchase have been largely positive. SunTrust's Bob Peck: "We see synergies/opportunity between Xoom and [mobile payments platform] Venmo inside the PayPal ecosystem enabling lower cost (ACH, or debit worse-case) wallet funding (PayPal, Paydiant) and in-market and cross-border [consumer-to-consumer] and [consumer-to-business] transactions. This could serve to sustain relevance on the consumer side and (interrelated) preserve/lower funding cost and strengthen the value proposition on the merchant side."
- Baird's Colin Sebastian: "Both PayPal and Xoom have competitive advantages from fraud-detection technology underlying their respective products. While Xoom’s engine was initially built using concepts borrowed from PayPal, they have since extended the functionality to peer-to-peer international remittance..."
- Keefe, Bruyette & Woods' Sanjay Sakhrani: "[I]nternational money transmittance is a highly adjacent business to P2P payments and digital wallets, which is PayPal's core business…Despite a fairly rich valuation, XOOM is growing quickly and brings to the table a scalable, bolt-on platform to help offer additional value-add..." Morgan Stanley's Brian Nowak sees an opportunity to significantly expand Xoom's op. margin (4% in 2014).
- Xoom closed at $25.05, slightly above PayPal's $25/share buyout price. SunTrust's Andrew Jeffrey thinks Western Union and/or Internet companies could make a rival bid. Baird's Sebastian: "Higher bid from traditional money transfer company still plausible given a PayPal-Xoom combination presents a much greater (and better-capitalized) competitive threat."
Wed, Jul. 1, 6:06 PM
Wed, Jul. 1, 5:40 PM
- PayPal (EBAY, PYPL) is acquiring leading online money transfer/remittance service provider XOOM for an enterprise value of $890M, or $25/share, in cash.
- The price represents a 21% premium to Xoom's Wednesday close. The deal comes ahead of PayPal's mid-July spinoff into a separate, publicly-traded, company. XOOM has been halted.
- PayPal president/soon-to-be-CEO Dan Schulman: "Expanding into international money transfer and remittances aligns with our strategic vision to democratize the movement and management of money ... Xoom's presence in 37 countries in particular, Mexico, India, the Philippines, China and Brazil will help us accelerate our expansion in these important markets."
- The deal is expected to close in Q4, and be slightly dilutive to PayPal's 2016 EPS. PayPal plans to pay for it with existing cash. Xoom will operate as a separate service within PayPal.
- Recent PayPal acquisitions include white-label mobile payments services provider Paydiant, cybersecurity software firm CyActive, and rival online/mobile payments service provider Braintree.
Fri, Jun. 26, 4:47 PM
- EBAY's board has officially approved the breakup of the company's Marketplaces and PayPal units into separate, publicly-traded, firms.
- As previously announced, Marketplaces (to be still known as eBay) will trade under the symbol EBAY, and PayPal under the symbol PYPL. PayPal shares are expected to be distributed to eBay shareholders on Friday, July 17, with regular trading in the shares starting on Monday, July 20.
- 2 months ago: eBay/PayPal hammer out post-spinoff terms; Donahoe to chair PayPal
Fri, Jun. 19, 11:55 AM
- eBay (EBAY +1%) has agreed to sell its stake in the online classifieds leader (originally bought in 2004) back to the company, thereby ending years of litigation.
- No word yet on the sale price, but it could be substantial: Estimates for Craigslist's valuation have been in the several-billion range and higher over the years. The company has shown no interest in going public, and remains averse to aggressively monetizing its platform.
Tue, Jun. 16, 2:33 PM
- 5 months after eBay (EBAY +1.2%) stated it's mulling a sale or IPO for its Enterprise unit, Bloomberg reports the company wants to unload the business prior to its Marketplaces/PayPal split, set to occur in 2H15. Shares have moved slightly higher in response.
- Enterprise, formerly known as GSI Commerce, provides online storefront, in-store shopping, and order management software and services for retailers. The unit had Q1 revenue of $288M (+7% Y/Y), and drove GMS of $1.01B (+8%). 2014 revenue totaled $1.24B (+6% Y/Y).
Thu, Jun. 11, 3:22 AM
- New York law enforcement officials have written to eBay (NASDAQ:EBAY) and PayPal (Pending:PYPL) this week, saying the companies' revised user policies "raise issues" under consumer protection laws, NYT reports.
- The updated user agreements would allow the two companies to call or text their combined 322M users for offers and promotions, to collect a debt or to poll their opinions through questionnaires.
- Ebay's new user agreement is scheduled to take effect on Monday and PayPal's will become effective on July 1.
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